Stop Hauling that Leachate! From Concept to Operation Leachate Management Rick Sapir Hawkins Delafield & Wood LLP

Transcription

1 Building lifetime relationships with our clients and employees. Monmouth County Reclamation Center Stop Hauling that Leachate! From Concept to Operation Leachate Management Rick Sapir Hawkins Delafield & Wood LLP Arie Kremen Cornerstone Environmental Wednesday May 6, 2015

2 MCRC Brief 52 municipalities or over 630,000 population (2013) Permitted capacity: 1,350 ton/day (balefill) Air space capacity through 2018 MCRC services: Material Processing and Recovery Facility (3,500 tpd) 2 LFGTE plants, totaling 12 MW Truckwash Facility Household Hazardous Waste Residence Convenience Center 6

3 Phase I 150,000 gpd Leachate Treatment Phase II Valley Fill Lateral Expansion Phase III 500,000 gal Storage Tanker Loading Dock Monmouth County Reclamation Center

4 Leachate Management Until 1994, direct discharge to POTW, up to 100,000 gpd Treatment process: Trickling Filters Discontinued after leachate implicated process upset SIU permit still current, but air-gap connection in place Disposal to regional treatment facilities by tankers Disposal cost increased over the years: $0.08/gal

5 2010 Leachate Disposal Summary 10,350 trucks, approx. 30 trucks per day 67.3 million gallons, equiv. 184,000 gpd $4.76 million, $13,000 per day Landfill Acreage (ac) Leachate (%) Phase I 54 20% Phase II % Phase III 95 45% Total %

6 Feasibility Study (2010) Existing practice is not sustainable Tasked to evaluate all options: 1. Disposal to regional POTW via tanker trucks 2. Treatment, onsite effluent discharge 3. Pre-treatment, effluent discharge to POTW via sewer Recommendations Onsite pre-treatment, maximizes potential for cost savings Conventional continuous flow processes Limited area available for treatment facility

7 COUNTY S OBJECTIVES Reduce Cost of Leachate Disposal Treat Leachate On-Site Eliminate/Reduce Truck Traffic Design/Build/Operate (DBO): Partner with Industry Expert Obtain Long-Term Pricing and Performance Guarantees that are Financially Secured Transfer Risk 11

8 PROCUREMENT PROCESS RFP Issued Pursuant to New Jersey Wastewater Treatment Public Private Contracting Act (the Act ) Act allows for procurement of aggregated services and long-term contract with private company for wastewater treatment services Act also provides for selection on factors in addition to price and allows negotiation 12

9 Material RFP Considerations Draft Service Agreement Performance Guarantees Term Security for Performance Minimum Experience Requirements Evaluation Factors/Weighting Cost Proposal Structure IRS Rev. Proc Compliance 13

10 Material RFP Consideration (cont d) Promote creativity, flexibility, and cost-competitiveness Demonstrated capability to meet performance criteria Permit-ability Prohibited Technologies Trickling Filters Sequential Batch Reactor (SBR) Powdered Activated Carbon Treatment (PACT) Aerated Lagoons Constructed Wetlands Pilots, research facilities

11 Probability Design Capacity 100% 90% 80% 70% 60% 50% 40% 30% 20% Design Flow Rate 10% 0% 0 50, , , , , , ,000 Leachate Flow Rate (gallons per day)

12 mg/l Leachate Characterization 100,000 10,000 1, BOD COD TOC NH4-N TKN TDS TSS ALK ph Fe

13 Selected Leachate Quality Parameters Parameter Units RANGE (10 90 Percentile) Maximum 97.5 Percentile Ammonia, as Nitrogen ppm , ,730.0 Biochemical Oxygen Demand ppm 1, , ,450.0 Total Suspended Solids ppm ,070.0 Cadmium ppm ND Copper ppm Cyanide ppm ND Lead ppm Magnesium ppm Mercury ppm <PQL 0.0 Nickel ppm 0.3 Silver ppm Zinc ppm Petrol Hydrocarbons ppm ND

14 Permit Limits SIU Permit, existing: 100,000 gpd Leachate Parameter Units RANGE (10 90 Percentile) Maximum 97.5 Percentile Monthly Average SIU Permit Daily Maximum Ammonia, as Nitrogen ppm , ,730.0 REPORT REPORT Biochemical Oxygen Demand ppm 1, , , REPORT Total Suspended Solids ppm , REPORT Cadmium ppm ND REPORT 10.5 Copper ppm REPORT 10.9 Cyanide ppm ND REPORT 0.9 Lead ppm REPORT 1.6 Magnesium ppm Mercury ppm <PQL 0.0 REPORT 1.0 Nickel ppm 0.3 REPORT 10.2 Silver ppm REPORT 2.8 Zinc ppm REPORT 2.1 Petrol Hydrocarbons ppm ND

15 RFP Discharge Limits SIU Permit Modification: 150,000 gpd Leachate 15,000 gpd Sanitary Wastewater Parameter Units Provisional Discharge Limits Daily Maximum Existing SIU Permit Monthly Average Daily Maximum Ammonia, as Nitrogen ppm 25 Report Report Total Kjeldahl Nitrogen ppm Biochemical Oxygen Demand ppm Report Chemical Oxygen Demand ppm 700-1, Total Suspended Solids ppm Report Cadmium ppm 0.1 Report 10.5 Chromium ppm Copper ppm 0.1 Report 10.9 Lead ppm 0.1 Report 1.6 Mercury ppm Report 1.0 Nickel ppm 0.1 Report 10.2 Zinc ppm 0.2 Report 2.1 Petroleum Hydrocarbons ppm

16 Post-Proposal Process Proposals Received May 2011: Natural Systems Utilities (Affiliate of Applied Water Management) Veolia Clarification and Evaluation Significant Factors 20 Experience Business

17 Significant Factors (cont d) Technical Approach Aerobic biological treatment Metal Precipitation Veolia Gravity Clarification Concrete Process Tankage Cost NSU Membrane Separation Stainless Steel Bio-reactors NSU Veolia Trucking Fixed Fee $7,914,459 $15,260,000 Annual Service Fee $1,487,170 $840, year NPV $36,900,000 $44,800,000 $78,200, year NPV $45,800,000 $57,200,000 $102,700,000

18 Schedule of Values 100% 90% 80% 70% 60% Veolia Fixed Fee: $15,260,000 50% 40% 30% 20% NSU Fixed Fee: $7,914,500 10% 0% Months from Contract Execution

19 Unit Cost ($/gpd) Unit Cost Comparison $0.140 $0.120 $0.100 $0.080 Veolia Trucking $0.060 $0.040 NSU $ year Contract Period $

20 Post-Proposal Process (cont d) Selection, Negotiation and Pilot Testing Public Hearing and Public Comment Period Regulatory Approval of Contract 24

21 SERVICE CONTRACT COMPREHENSIVE SCOPE OF SERVICES TERM Design, Permit, Build, Operate, Maintain and Manage a Leachate Pretreatment Facility at the Monmouth County Reclamation Center 15 Years Renewal Option for one additional 5-Year Term at County s sole discretion COUNTY OWNED AND FINANCED < 3% Debt Financing 25

22 SECURITY FOR PERFORMANCE Performance and Payment Bond Equal to Fixed Design-Build Price Retainage Until Acceptance Operations Performance Bond Equal to Annual Service Fee Required Insurance 26 Guaranty from Middlesex Water Company

23 DELAY LIQUIDATED DAMAGES AND EARLY COMPLETION BONUS Failure to Meet Scheduled Acceptance Date: Company Must Pay $4,000 Per Day For Each Day Of Delay, Unless Excused By Uncontrollable Circumstances Early Completion Bonus: 30 Company Eligible to Receive Early Completion Bonus of $3,000 Per Day (Maximum of $100,000) if Acceptance Date Occurs 11 or More Days Before Scheduled Acceptance Date

24 COUNTY DESIGN-BUILD PERIOD RESPONSIBILITIES Payment of Fixed Design-Build Price = $7,914, Based Upon Schedule of Values Subject to Maximum Drawdown Schedule Subject to Retainage Review Design Submittals for Compliance with Contract Requirements 34

25 KEY COMPANY PERFORMANCE GUARANTEES PRETREATED LEACHATE GUARANTEE Operate Managed Assets on continuous 24-hour per day, 7-day per week basis so as to receive and treat all Raw Leachate and discharge Pretreated Leachate up to design capacity (150,000 GPD) in accordance with effluent quality requirements EFFLUENT QUALITY REQUIREMENTS Both Contractual and Regulatory 36

26 ODOR GUARANTEE Company must comply with odor limits imposed by Applicable Law and the Odor Control Standards set forth in the Service Contract Issues Associated with Differentiating Odors from Leachate Treatment Plant vs. Landfill 37

27 ENVIRONMENTAL GUARANTEE Assure that Managed Assets meet all requirements of Applicable Law with respect to noise control, fugitive dust, traffic, litter, lighting, vectors and other potentially adverse environmental effects 38

28 MAINTENANCE, REPAIR AND REPLACEMENT Company must perform all normal and ordinary predictive, preventive and corrective maintenance of the Facility The Company must also perform all major maintenance, repairs and replacement of the Facility Mechanisms to ensure compliance with maintenance obligations: 39 MR&R Schedule Inspections Recordkeeping Requirements (CMMS) End of Term Obligations

29 COUNTY OPERATIONS PERIOD OBLIGATIONS Fixed Design Build Price = $7,914, Annual Base Operation Fee = $1,457, ,000 GPD / Excess Fee Operation Fee Subject to Annual Escalation (CPI) Electricity and Gas (Up to Guaranteed Maximum Utilization Levels) 40

30 OBJECTIVES ACCOMPLISHED Significant Reduction in Costs Elimination of Price Volatility Associated with Hauling and Off-Site Disposal Significant Reduction in Truck Traffic and Air Pollution Partnership with Industry Expert Long-Term Pricing and Performance Guarantees with Appropriate Security Significant Risk Transfer 42

31 PROJECT STATUS Final Engineering Design Complete Treatment Works Approval Received SIU Permit Received Construction Permits Received Construction began October 2013 Zero Pricing Change Orders to Date Completion prior to December

32 From Landfills POTW Selected Process Return Activated Sludge Waste Activated Sludge Leachate Storage Bioreactor Bioreactor Ultrafiltration Ultrafiltration Floccing Agent Lamella Clarifier Filter Filter Return Activated Sludge Truck Haul-out Regional POTW Centrifuge To Landfill Plant Forward Flow: 150,000 gpd Dewatered Sludge: 14,500 lb/day

33 Groundbreaking Ceremony Source: Monmouth County, Department of Public Information & Tourism, Oct 25, 2013

34 Twin Bioreactors

35 UF Filtration Unit Typical Membrane Module

36 Lamella-type Clarifier

37 Sludge Dewatering

38 QUESTIONS OR COMMENTS Rick Sapir Hawkins Delafield & Wood LLP Arie Kremen Cornerstone Environmental